Coinbase CEO Brian Armstrong believes forthcoming US stablecoin regulations could require issuers to back their dollar-denominated tokens entirely with US Treasury bills — a move that could make it harder for offshore companies to serve the American market.
In an interview with The Wall Street Journal at the World Economic Forum in Davos, Switzerland, Armstrong said he expects stablecoin laws to become clearer in the near future. Two requirements could be that all stablecoin operators in the United States fully back their tokens with US Treasury bonds and complete periodic audits.
He singled out stablecoin issuer Tether as one company that could face the brunt of new legislation. Armstrong said Coinbase would delist USDt (USDT) if Tether could not comply with any new US legislation.
In the meantime, Coinbase intends to continue offering USDt services to help customers access other crypto assets.
“There are a lot of people with Tether, and we want to give them an off-ramp if we want to help them transition to a system that we think is more secure,” Armstrong said.
As Cointelegraph reported, Coinbase moved to delist USDt and other noncompliant stablecoins in Europe in anticipation of the Markets in Crypto-Assets Regulation (MiCA).
However, a Coinbase spokesperson told Cointelegraph that relistings are possible if stablecoins “achieve MiCA compliance on a later date.”
The stablecoin market is valued at $218.7 billion, with the top five assets accounting for 92% of the total. Source: CoinMarketCap
Related: US CBDC ‘is dead’ under Trump, but stablecoins could be set to explode
US stablecoin legislation is a top priority
US President Donald Trump has signaled that cryptocurrency will play an important role in his second term, with stablecoins arguably being the top priority.
Republican Representative Tom Emmer said Congress’ first crypto priority will be “passing comprehensive market structure and stablecoin legislation.”
Emmer was recently appointed vice chairman of the House Subcommittee on Digital Assets, Financial Technology and Artificial Intelligence.
He said pro-crypto legislation is now able to move forward with a Republican-controlled Congress and former Securities and Exchange Commission Chair Gary Gensler “confined to the waste bin of Washington.”
Source: Tom Emmer
Stablecoin legislation is intended to “cement” the US dollar’s position as a global reserve currency — at least according to the Payment Stablecoin Act proposed by US Senators Cynthia Lummis and Kirsten Gillibrand.
The act was introduced on April 17, 2024, and it was referred to the Committee on Banking, Housing, and Urban Affairs.
Magazine: Stablecoin for cyber-scammers launches, Sony L2 drama: Asia Express